TEST OF HYPOTHESES

Question 1

conjecture or supposition about a population
parameter. This conjecture may or may not be
true.

Answer 1

STATISTICAL HYPOTHESES

Question 2

a premise or claim that we want to test or
investigate.

Answer 2

HYPOTHESIS

Question 3

a statistical hypothesis that states that there
is no difference between a parameter and a
particular value. This is usually the one
being rejected or failed to reject.

Answer 3

NULL HYPOTHESIS (H0)

Question 4

a statistical hypothesis that states that a
parameter and a particular value have a
difference

Answer 4

ALTERNATIVE HYPOTHESIS (H1 or Ha)

Question 5

shows that the null hypothesis is
rejected when the critical or rejection region
lies entirely in one of the tails of sampling
distribution. It can either be a left-tailed test
or right-tailed test depending on where the
alternative hypothesis is expressed.

Answer 5

ONE-TAILED TEST (DIRECTIONAL TEST)

Question 6

shows that the null hypothesis is rejected
when the critical or rejection region is split
into two parts, one in each tail of the
sampling distribution.

Answer 6

TWO-TAILED TEST (NON-DIRECTIONAL TEST)

Question 7

occurs when you reject the null
hypothesis when it is true. This is denoted by alpha,
ɑ. In the test of hypothesis, the normal curve that
shows the acceptance region is called the alpha
region. Thus, ___ is also called alpha error.

Answer 7

TYPE I ERROR

Question 8

occurs when you failed to reject the null hypothesis when it is false. This is denoted by beta, β. In the test of hypothesis, the normal curve that shows the rejection region is called the beta region. Thus, ___ is also called beta error.

Answer 8

TYPE II ERROR

Question 9

the maximum allowable probability of committing an error.

Answer 9

Level of Significance (ɑ)

Question 10

separates the critical region from the
non-critical region.

Answer 10

Critical Value

Question 11

range of values of the test value that indicates that the H0 should be
rejected

Answer 11

Critical Region (rejection region)

Question 12

range of values of the test value that indicates that the H0
should not be rejected.

Answer 12

Non-Critical Region (non-rejection region)

Question 13

STEPS IN TESTING A HYPOTHESIS

Answer 13

1. State the H0 and H1.
2. Determine the statistical test to be used.
3. Set the level of significance (ɑ).
4. State the Decision Rule.
5. Computations.
6. Decision.
7. Interpretation.

Question 14

test-statistic for the mean of a population which
aims to compare the mean of the sample and
the mean of the population.

Answer 14

ONE SAMPLE MEAN Z-TEST

Question 15

Use ___ if the claim stated a mean/average
and the standard deviation of the population.
Usually SD of the population is stated next to the
claim.

Answer 15

z-test

Question 16

Use ___ if the claim stated a mean/average
with the standard deviation of the sample.
Usually the SD of the sample is stated next to
the sample mean.

Answer 16

t-test

Question 17

Use population ___ if the claim stated a
percentage.

Answer 17

z-test

Question 18

examines the relationship between two
variables.

Answer 18

CORRELATION ANALYSIS

Question 19

a statistical procedure for predicting the
value of one variable in terms of another
variable.

Answer 19

ALTERNATIVE HYPOTHESIS (H1 or Ha)

Question 20

-tool in assessing the assumptions in a
correlation analysis
- describes the correlation between two variables
in terms of form, direction, and strength
- the line is called a TREND LINE

Answer 20

SCATTER PLOT

Question 21

• exists if high values in one
  variable are associated with
  high values in another
  variable
• “As x increases, y also
  increases”, also considered
  as a DIRECT RELATIONSHIP

Answer 21

POSITIVE CORRELATION

Question 22

• exists if high values in one
  variable are associated with
  low values in another
  variable.
• “As x increases, y
  decreases” or vice versa,
  also considered as a
  INVERSE RELATIONSHIP

Answer 22

NEGATIVE CORRELATION

Question 23

• exists when high values
  in one variable are
  associated with either high
  or low values in the other
  variable.

Answer 23

ZERO CORRELATION

Question 24

• a data point that differs
  significantly from other
  observations.

Answer 24

OUTLIERS

Question 25

The ___ is a number which
describes the strength and direction of relationship
between two variables.

Answer 25

correlation coefficient (r)